SINGAPORE: Palm oil may break a resistance at 4,274 ringgit per tonne and rise to 4,344 ringgit per tonne, as it has pierced above a lower resistance at 4,260 ringgit.
A wave B peaked at the resistance at 4,260 ringgit, which is critical in evaluating whether the contract could extend gains towards the May 12 high of 4,525 ringgit or turn around and fall towards the range of 3,977 ringgit to 4,090 ringgit.
The current assumption is the uptrend may develop more. A break below 4,204 ringgit could signal a reversal of the uptrend. On the daily chart, the contract broke a resistance at 4,147 ringgit. The break opened the way towards the range of 4,344 ringgit to 4,525 ringgit. Simply based on the big candlestick on July 26, the contract may rise further on Monday.
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Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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